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2022/10/28

How Does Musk's EV Darling Actually Rank?

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How Does Musk's EV Darling Actually Rank?

Jody Chudley, Contributing Analyst, The Oxford Club

Jody Chudley

Tesla (Nasdaq: TSLA) recently released its third quarter earnings, and I must admit that I am impressed.

All of the important third quarter 2022 numbers impressed me...

First, revenue came in at $21.4 billion, for an increase of 55% from the same quarter last year. That is some impressive growth.

Second, net income jumped to $3.3 billion, which doubled the $1.6 billion posted in the third quarter of 2021... an even bigger increase than revenue's!

Third, Tesla generated $3.2 billion in free cash flow for the quarter. That means operating cash flow exceeded money invested in the business by $3.2 billion.

And finally, Tesla's balance sheet remains pristine, with $21 billion in cash and no significant long-term debt.

When you put those four things together (growth, profitability, free cash flow and balance sheet strength), you have almost everything that you could possibly want as an investor.

But you will notice that I said almost everything.

To be a good investment, Tesla's stock is still lacking two extremely important things...

Get everything you need to know in this week's Value Meter.

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